ENFORCEMENT DECREE OF THE KOREA CREDIT GUARANTEE FUND ACT
Presidential Decree No. 7570, Mar. 4, 1975
Amended by Presidential Decree No. 7833, Sep. 29, 1975
Presidential Decree No. 8604, jun. 24, 1977
Presidential Decree No. 9451, May 7, 1979
Presidential Decree No. 9735, Jan. 23, 1980
Presidential Decree No. 10653, Dec. 29, 1981
Presidential Decree No. 11523, Oct. 6, 1984
Presidential Decree No. 12416, Mar. 18, 1988
Presidential Decree No. 12820, Oct. 17, 1989
Presidential Decree No. 13870, Mar. 6, 1993
Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 14828, Dec. 14, 1995
Presidential Decree No. 15556, Dec. 29, 1997
Presidential Decree No. 15569, Dec. 31, 1997
Presidential Decree No. 15627, Feb. 12, 1998
Presidential Decree No. 16709, Feb. 14, 2000
Presidential Decree No. 16736, Feb. 28, 2000
Presidential Decree No. 17791, Dec. 5, 2002
Presidential Decree No. 20261, Sep. 10, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 21482, May 6, 2009
Presidential Decree No. 21835, Nov. 20, 2009
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 24696, Aug. 27, 2013
Presidential Decree No. 25279, Mar. 24, 2014
Presidential Decree No. 25841, Dec. 9, 2014
Presidential Decree No. 27204, May 31, 2016
Presidential Decree No. 27205, May 31, 2016
Presidential Decree No. 27804, Jan. 24, 2017
Presidential Decree No. 29677, Apr. 2, 2019
Presidential Decree No. 30893, Aug. 4, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31860, jun. 29, 2021
Presidential Decree No. 32091, Oct. 21, 2021
Presidential Decree No. 32449, Feb. 17, 2022
Presidential Decree No. 32559, Mar. 31, 2022
Presidential Decree No. 32947, Oct. 4, 2022
The purpose of this Decree is to prescribe the matters necessary for the enforcement of the Credit Guarantee Fund Act. <Amended on May 6, 2009>
| Article 2 Deleted. <Dec. 14, 1995> |
| Article 3 (Monetary Liabilities) |
"Monetary liabilities prescribed by Presidential Decree" in subparagraph 2 (d) of Article 2 of the Credit Guarantee Fund Act (hereinafter referred to as the "Act") means any of the following: <Amended on Sep. 29, 1975; Jun. 24, 1977; May 7, 1979; Dec. 29, 1981; Oct. 6, 1984; Oct. 17, 1989, Dec. 23, 1994; Dec. 14, 1995. Dec. 31, 1997; Sep. 10, 2007; Feb. 29, 2008; May 6, 2009; Nov. 20, 2009; May 31, 2016; Apr. 2, 2019> | 1. | National taxes and local taxes which shall be borne by enterprises; |
| 2. | Liabilities of enterprises as prescribed by the Financial Services Commission through a resolution of the operating committee, due to persons other than financial companies, etc. among those who are engaged in the business of financing to enterprises; |
| 3. | Liabilities arising from bills issued (including ‘accepted' and ‘endorsed'; hereinafter the same shall apply) by enterprises in relation to commercial transactions, and the liabilities arising from bills endorsed by enterprises which are obtained in relation to commercial transactions in order to obtain funds; |
| 3-2. | Liabilities for payment of price, by contracts related to commercial transactions of small and medium enterprises, as prescribed by the operations manual; |
| 3-3. | Liabilities due to a person who has accepted bills issued by small and medium enterprises on the security of the export letters of credit (including local letters of credit); |
| 4. | Liabilities of enterprises due to facilities leasing business entities by leasing of facilities, machinery, equipment, etc. from the facilities leasing business entities pursuant to the Specialized Credit Finance Business Act; |
| 5. | Liabilities of small and medium enterprises due to the Korea SMEs and Startups Agency arising from leasing facilities, machinery, equipment, etc. from the Korea SMEs and Startups Agency pursuant to the Small and Medium Enterprises Promotion Act; |
| 6. | Payment liabilities in connection with various bail money to be borne by enterprises in connection with the signing of contracts (including bids) with the Government, local governments, public agencies pursuant to Article 4 of the Act on the Management of Public Institutions or other persons as prescribed by the Financial Services Commission, for construction works, supply of goods and provision of services; |
| 7. | Other monetary liabilities prescribed by the Financial Services Commission as monetary liabilities of an enterprise. |
| Article 3-2 Deleted. <Dec. 14, 1995> |
| Article 4 (Preferential Guarantee) |
"Funds corresponding to objectives prescribed by Presidential Decree" in Article 3 (1) of the Act means the funds falling under any of the following subparagraphs: <Amended on May 31, 2016> | 1. | Financing funds for export support; |
| 2. | Funds specially required for the national economy, such as contributing to the improvement of the productivity of enterprises. |
[This Article Wholly Amended on Dec. 14, 1995]
| Article 5 (Guarantees for Small and Medium Enterprises) |
In preparing or modifying the operational plan of the Credit Guarantee Fund (hereinafter referred to as the "Fund") as provided in Article 26 of the Act, not less than 60/100 of the total amount of guarantees shall be guarantees for small and medium enterprises. <Amended on Oct. 6, 1984>
| Article 6 (Registration of Incorporation) |
| (1) | The commissioners for the establishment of the Fund as provided in Article 3 of the Addenda of the Act shall prepare the articles of incorporation and register the incorporation of the Fund at the seat of its head office within two weeks after obtaining the authorization of the Financial Services Commission. <Amended on Dec. 23, 1994; Dec. 14, 1995; Feb. 29, 2008> |
| (2) | Matters falling under any of the following subparagraphs shall be written in the registration as provided in paragraph (1): <Amended on Dec. 14, 1995> |
| 4. | Branch and sub-branch; |
| 5. | Fundamental property at the time of incorporation; |
| 6. | Name, resident registration number and address of the president; |
| 7. | Names and resident registration numbers of the managing director, directors, and auditors; |
| 8. | Method of public announcement. |
| Article 7 (Registration of New Branch or Sub-Branch) |
| (1) | Where the Fund has established a branch or a sub-branch, the Fund shall make due registration in accordance with the descriptions falling under any of the following subparagraphs: <Amended on Dec. 14, 1995; May 6, 2009> |
| 1. | Intent of the establishment of a branch or sub-branch at the seat of the head office within two weeks from the date of the establishment; |
| 2. | The particulars provided in Article 6 (2) 1 through 3, 6, and 8 at the seat of the newly established branch or sub-branch within three weeks from the date of the establishment; |
| 3. | Deleted. <Dec. 14, 1995> |
| (2) | Where a new branch or sub-branch has been established within the jurisdictional area of a registry office which has jurisdiction over the head office or any existing branch or sub-branch, only the matters relating to the new branch or sub-branch shall be registered. |
| Article 8 (Registration of Relocation) |
| (1) | Where the Fund relocates its head office, it shall have such relocation registered within two weeks therefrom. |
| (2) | Where the Fund has relocated its branch or its sub-branch, it shall register that effect at the old seat within three weeks after the relocation and register the particulars as provided in Article 6 (2) 1 through 3, 6 and 8 at the new seat within four weeks therefrom: Provided, That in cases of relocating a branch or a sub-branch to a place under the jurisdiction of the same registry office, the Fund shall have it registered within two weeks therefrom. <Amended on Dec. 14, 1995> |
| Article 9 (Registration of Change) |
Where the matters as provided in the subparagraphs of Article 6 (2) are changed, the changed matters shall be registered within two weeks at the seat of the head office. In such cases, if the matters as provided in Article 6 (2) 1 through 3, 6, and 8 are changed, the changed matters shall also be registered, within three weeks, at the seat of the branch or sub-branch office. [This Article Wholly Amended on Dec. 14, 1995]
| Article 10 (Registration of Appointment of Agent) |
Where the president of the Fund has appointed an agent as provided in Article 22 of the Act, any of the following matters shall be registered within two weeks thereafter at the seat of the head office or the branch or the sub-branch for which the agent has been appointed. The same shall also apply to any change of registered matters: | 1. | Name and domicile of the agent; |
| 2. | Head office, branch, or sub-branch for which the agent has been appointed; |
| 3. | Contents of restriction, in cases of restricting the authority of the agent. |
| Article 11 (Calculation of Registration Period) |
Where any of the matters to be registered as provided in Articles 6 through 10 requires the authorization or approval from the Financial Services Commission, the registration period shall be calculated from the date on which the letter of such authorization or approval arrives. <Amended on Dec. 23, 1994; Dec. 14, 1995; Feb. 29, 2008>
| Article 12 (Registry Office) |
| (1) | District courts, its branch or registry office which has jurisdiction over the areas in which the head office, branches, and sub-branches of the Fund are located shall be the competent registry office to a respective offices of the Fund, with regard to a registration to be made by the Fund. |
| (2) | Each registry office shall be furnished with a registry of the Credit Guarantee Fund. |
| Article 13 (Applicants for Registration and Documents to be Annexed to Written Application) |
The registration of incorporation as provided in Article 6 shall be made by the joint request of the commissioners for establishment and the registration as provided in Articles 7 through 10 shall be made at the request of the president of the Fund, and the written application for registration shall be accompanied by the documents falling under any of the following subparagraphs: | 1. | In cases of the registration of incorporation as provided in Article 6, the articles of incorporation of the Fund, a copy of the authorization of such articles of incorporation, and the documents certifying that the president of the Fund has been appointed as provided in Article 16 (1) of the Act; |
| 2. | In cases of the registration of a new branch or sub-branch as provided in Article 7, the documents certifying the establishment of the new branch or sub-branch; |
| 3. | In cases of the registration of relocation as provided in Article 8, the documents certifying the relocation; |
| 4. | In cases of the registration of change as provided in Article 9, the documents certifying the change; |
| 5. | In cases of the registration of the appointment of an agent as provided in Article 10, the documents certifying that the appointment of an agent has been made in accordance with Article 22 of the Act and in the case of restricting the authority of an agent, the documents certifying the restriction. |
| Article 14 (Provisions Applicable Mutatis Mutandis concerning Registration) |
| Article 15 (Public Announcement of Registration of Incorporation) |
Upon completing the registration of incorporation as provided in Article 6, the Fund shall without delay make a public announcement thereof.
| Article 16 (Duties of Chairperson of Committee) |
| (1) | A meeting of the operating committee (hereinafter referred to as "committee") shall be convened in accordance with the provisions of the articles of incorporation, and chaired by the chairperson of the committee. |
| (2) | Where the chairperson is unable to perform his or her duties, the managing director of the Fund and other members of the committee as designated by the chairperson shall, in order, act as chairperson on his or her behalf. |
| Article 17 (Method of Resolution) |
| (1) | A majority of the members of the committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present. <Amended on May 6, 2009> |
| (2) | The managing director, directors, and auditor of the Fund may attend the meetings of the committee and state their opinions. |
| Article 18 (Minutes of Committee Meeting) |
The committee shall prepare the minutes of its meetings, which shall be signed and sealed by the chairperson and all the members present at the meetings.
| Article 19 (Exclusion of Members) |
Where an agenda item of a meeting of the committee concerns personal interests of any member of the board or his or her relative or the interests of an institution or an enterprise to which he or she belongs, he or she shall be excluded from deliberation and resolution on such agenda item. <Amended on Mar. 31, 2022>
[Title Amended on Mar. 31, 2022]
| Article 19-2 (Organization Subject to Re-Guarantee) |
| (1) | Deleted. <May 6, 2009> |
| (3) | The Fund shall not re-guarantee any original guarantee for any liability other than those pursuant to subparagraph 2 of Article 2 of the Act, and any liability of an enterprise operating a business in the guarantee-restricted industry pursuant to subparagraph 1 (b) of Article 24 of the Act. <Amended on May 6, 2009; May 31, 2016> |
[This Article Newly Inserted on Dec. 14, 2007]
| Article 19-3 (Matters to Be Observed by Original Guarantor) |
The president of the Fund shall, in entering into a contract as provided in Article 23-2 (1) of the Act, cause the original guarantor to include in the contract the matters to be observed by the original guarantor in connection with a re-guarantee contract, payment of the re-guarantee fee, payment of the coverage amount, exercise of the right to demand indemnity, return of recovered money, etc., and those concerning the submission of a report to confirm whether the above-mentioned matters are fulfilled or not, and the inspection on the operational situation, etc. [This Article Newly Inserted on Dec. 14, 2007]
| Article 19-4 (Rate of Re-Guarantee) |
| (1) | "Rate prescribed by Presidential Decree" in Article 23-2 (3) of the Act means 50/100: Provided, That where the Financial Services Commission deems it particularly necessary for the stimulation of the regional economy, emergency disaster restoration, etc., the rate may be determined differently, within the limit of 60/100. <Amended on Feb. 29, 2008; May 31, 2016> |
[This Article Newly Inserted on Dec. 14, 2007]
| Article 19-5 (Claim for Discharge of Re-Guaranteed Liabilities) |
[This Article Newly Inserted on Dec. 14, 2007]
| Article 19-6 (Termination and Change of Re-Guarantee Contracts) |
The Fund may terminate or change the contract entered into with the original guarantor as provided in Article 23-2 (1) of the Act, where any of the following causes occurs: | 1. | Where the re-guarantee service of the original guarantor as provided in Article 23-2 of the Act is contrary to the provisions of the related statutes or is carried out unlawfully; |
| 2. | Where the original guarantor has been negligent in exercising the right to demand indemnity; |
| 3. | Where any cause of termination or change of the contract stipulated by the contract entered into by the Fund with the original guarantor, as provided in Article 23-2 (1) of the Act, takes place. |
[This Article Newly Inserted on Dec. 14, 2007]
| Article 19-7 (Guarantee of Special Purpose Company) |
| (1) | "Property rights prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 23-3 (1) of the Act means any of the following subparagraphs: |
| (2) | The maximum limit of securitized assets, which a holder of assets may take over from the same enterprise pursuant to Article 23-3 (2) of the Act, shall be determined with a deduction of a specific amount from 30 billion won, in cases where the same enterprise is a small and medium enterprise, and from 50 billion won, where the same enterprise is one other than a small and medium enterprise, through a resolution of the board of directors of the Fund (hereinafter referred to as the "board of directors") pursuant to Article 15-2 of the Act in consideration of credit rating or such: Provided, That the maximum limit may be determined separately through a resolution of the board of directors, where the Financial Services Commission deems it specially necessary for the national economy. |
| (3) | Matters necessary for the standards, amounts, etc. of deduction pursuant to paragraph (2) shall be determined through a resolution of the board of directors: Provided, That such matters may be determined separately through a resolution of the board of directors, where the Financial Services Commission deems them specially necessary for the national economy. |
[This Article Newly Inserted on May 6, 2009]
| Article 19-8 (Guarantee-Linked Investment) |
| (1) | "Methods prescribed by Presidential Decree" in Article 23-4 (1) 6 of the Act means the following methods of investment: <Newly Inserted on Jun. 29, 2021> |
| 1. | The method of investment by which the profits are distributed through investment in a business operated by a small and medium enterprise maintaining the independence of accounting from other businesses; |
| 2. | The method of investment that meets the following requirements: |
| (a) | No repayment of investments shall be required upon their maturity; |
| (b) | No interest on investments shall be paid; |
| (c) | The amount of equity shares to be purchased for the investment shall be determined based on the value of the enterprise at the time of subsequent investment; |
| 3. | Other methods of investment determined and publicly notified by the Financial Services Commission to support the smooth financing of an enterprise, which are equivalent to the methods of investment prescribed in subparagraphs 1 and 2. |
| (2) | A ceiling on the aggregate of guarantee-linked investments by the Fund under Article 23-4 (2) of the Act shall be 10/100 of the sum of its fundamental property and its profits carried forward. <Amended on Dec. 9, 2014; Jun. 29, 2021> |
| (3) | The limit of guarantee-linked investment the Fund may make in the same enterprise under Article 23-4 (3) of the Act shall be three billion won. <Amended on Dec. 9, 2014; May 31, 2016; Jun. 29, 2021; Mar. 31, 2022> |
[This Article Newly Inserted on Aug. 27, 2013]
| Article 19-9 (Small and Medium Enterprise Factoring) |
| (1) | The scale of management of small and medium enterprise factoring under Article 23-5 (1) of the Act (hereinafter referred to as "small and medium enterprise factoring") shall be limited to 10/100 of the aggregate of the fundamental property of the Fund and profits carried forward. |
| (2) | The amount of accounts receivable of a small and medium entrepreneur that the Fund may purchase for purposes of implementing small and medium enterprise factoring (referring to a person under subparagraph 1 (a) and (b) of Article 2 of the Small and Medium Enterprises Promotion Act; hereafter the same shall apply in this Article) shall be limited to 10 billion won for each small or medium entrepreneur. |
| (3) | Notwithstanding paragraph (2), where it is deemed inevitable for overcoming an economic crisis or for restoring financial soundness of small and medium entrepreneurs, the Financial Services Commission may require the Fund to determine a separate purchase limit for accounts receivable under that paragraph. |
| (4) | Where the Fund sets a different limit on the purchase of accounts receivable pursuant to paragraph (3), it shall undergo a resolution thereon by the board of directors. |
| (5) | A small and medium entrepreneur intending to apply for small and medium enterprise factoring shall file with the Fund an application accompanied by the following documents: |
| 1. | A written application stating the reasons for filing an application for small and medium enterprise factoring; |
| 2. | Documents on the management, credit standing, etc. of the small and medium entrepreneur. |
| (6) | Upon receipt of an application filed under paragraph (5), the Fund may, if necessary for implementing small and medium enterprise factoring, verify whether the account debtor consents to the small and medium enterprise factoring and may inspect the management, credit standing, etc. of the small and medium entrepreneur and those of the debtor. |
| (7) | Once the Fund has decided to implement small and medium enterprise factoring, it shall conclude an agreement on the terms and conditions of the purchase of accounts receivable in consultation with the relevant small and medium entrepreneur. |
| (8) | Where the Fund purchases accounts receivable pursuant to paragraph (7), it shall notify the relevant account debtor of such purchase. |
| (9) | Except as provided in paragraphs (1) through (8), matters necessary for implementing small and medium enterprise factoring shall be as prescribed by the operational manual referred to in Article 24 of the Act. |
[This Article Newly Inserted on Mar. 31, 2022]
| Article 20 (Ceiling of Credit Guarantee) |
| (1) | A ceiling on the aggregate of a credit guarantee, re-guarantee, and guarantee for a special purpose company by the Fund as provided in Article 25 (1) of the Act shall be 20 times the sum of the fundamental property and the profits carried forward by the Fund. <Amended on Dec. 29, 1997; May 6, 2009> |
| (2) | The upper limit of credit guarantee (including re-guarantee) the Fund may grant to the same enterprise as prescribed in Article 25 (2) of the Act, shall be determined by deducting a fixed amount calculated by taking into consideration the uses, etc. of funds from three billion won, and the upper limit of the re-guarantee to an enterprise which receives a credit guarantee from the original guarantor, shall be 200 million won: Provided, That where deemed necessary by the Financial Services Commission for the national economy, the upper limit may be determined separately by resolution of the board of directors. <Amended on Feb. 12, 1998; Feb. 29, 2008; May 31, 2016; Jan. 5, 2021> |
| (3) | The matters necessary for the standards, amount, etc. of deducting under the provisions of paragraph (2) shall be determined through a resolution of the board of directors: Provided, That if the Financial Services Commission deems it particularly necessary for the national economy, they may be determined separately through a resolution of the board of directors. <Newly Inserted on Feb. 12, 1998; Feb. 29, 2008> |
[This Article Wholly Amended on Dec. 14, 1995]
| Article 21 (Grounds for Requesting Discharge of Guaranteed Liabilities) |
"Grounds prescribed by Presidential Decree" in Article 29 (1) of the Act means any of the following grounds: <Amended on May 7, 1979; Dec. 23, 1994; Dec. 14, 1995; Feb. 29, 2008; May 6, 2009; May 31, 2016> | 1. | With regard to a credit guarantee for a monetary liability as referred to in subparagraph 2 (a) of Article 2 of the Act, when three months have passed since a guaranteed enterprise (hereinafter referred to as "guaranteed enterprise") defaults (including cases of forfeiting the benefit of time) on its liabilities to financial companies, etc.; |
| 2. | With regard to a credit guarantee for a monetary liability as referred to in subparagraph 2 (b) of Article 2 of the Act, when three months have passed since financial companies, etc. discharges its guaranteed liabilities; |
| 3. | With regard to a credit guarantee for debentures as referred to in subparagraph 2 (c) of Article 2 of the Act, when the principal or interest of the debentures is in default; |
| 4. | With regard to a credit guarantee for a monetary liability as referred to in subparagraph 2 (d) of Article 2 of the Act and guarantee for a special purpose company under Article 23-3 (1) of the Act, when the ground prescribed by the Financial Services Commission occurs pursuant to the kind and nature of such liability. |
| Article 22 (Special Cases on Grounds for Requesting Discharge of Guaranteed Liabilities) |
| (1) | A creditor may request the Fund to discharge its guaranteed liabilities, notwithstanding Article 21, where a guaranteed enterprise falls under any of the following subparagraphs. In cases falling under subparagraph 4, prior consent from the guaranteed enterprise shall be obtained: <Amended on Jan. 23, 1980; May 6, 2009; Oct. 4, 2022> |
| 1. | Where the guaranteed enterprise concerned has become bankrupt or been dissolved; |
| 2. | Where the guaranteed enterprise concerned has not conducted business for not less than six months consecutively or has discontinued its business; |
| 3. | Where any ground prescribed by the board of directors arises as cases where the guaranteed enterprise is deemed to be difficult to normalize its management quickly since it has made an application for the commencement of procedures for rehabilitation pursuant to the Debtor Rehabilitation and Bankruptcy Act or such in addition to subparagraphs 1 and 2; |
| 4. | Where any ground prescribed by the Financial Services Commission arises, which requires the adjustment of liabilities, such as a dramatic decline in its debt repayment capability, other than the cases listed in subparagraphs 1 through 3. |
| (2) | Where the creditor intends to request the Fund to discharge its guaranteed liabilities as provided in paragraph (1), he or she shall verify the facts which constitute the cause. <Amended on May 6, 2009> |
| Article 23 (Scope of Subordinate Liabilities) |
"Subordinate liabilities prescribed by Presidential Decree" in Article 29 (2) of the Act means the aggregate of such interest or additional dues falling under any of the following subparagraphs, and expenditures resolved by the board of directors among the expenses incurred by the creditor for the collection of his or her claim: <Amended on Jan. 23, 1980; Oct. 6, 1984; Dec. 23, 1994; Dec. 14, 1995; May 6, 2009; May 31, 2016> | 1. | In cases of a credit guarantee for a monetary liability as referred to in subparagraph 2 (a) of Article 2 of the Act and guarantee of a special purpose company under Article 23-3 (1) of the Act, the interest on the primary liability calculated at the interest rate applicable to the original contract period, for the period from the maturity date of the said liability to the date on which the Fund discharges its guaranteed liabilities; |
| 2. | In cases of a credit guarantee for a monetary liability as referred to in subparagraph 2 (b) and (d) of Article 2 of the Act, the interest and the additional dues as described by the operations manual; |
| 3. | Deleted. <Dec. 14, 1995> |
| Article 23-2 (Sales of Claim for Indemnity) |
“Other persons prescribed by Presidential Decree” in subparagraph 5 of Article 30-2 of the Act means each of the following: | 2. | A company in which the Korea Asset Management Corporation established under the Korea Asset Management Corporation Act has invested to perform the business affairs under Article 26 (1) 1 and 2 of that Act. |
[This Article Wholly Amended on Oct. 4, 2022]
| Article 23-3 (Notice Duty of Creditor) |
"A creditor prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 31 of the Act, excluding its subparagraphs, means a creditor of a monetary liability as provided in subparagraph 2 (a) or (b) of Article 2 of the Act and a creditor of credit offering pursuant to Article 23-3 (1) 2 of the Act. <Amended on May 6, 2009; May 31, 2016> [This Article Newly Inserted on Jan. 23, 1980]
[Moved from Article 23-2; previous Article 23-3 moved to Article 23-4 <Jan. 24, 2017>]
| Article 23-4 (Comprehensive Management of Credit Information) |
| (1) | The Fund shall collect various materials concerning credit from related institutions and enterprises as provided in Article 31-2 of the Act, analyze and evaluate credit information obtained from credit surveys, etc. and also manage these materials and information systematically and comprehensively. <Amended on May 6, 2009> |
| (2) | The Fund may, in managing the credit information as provided in paragraph (1), make credit ratings classified by grade by analyzing comprehensively the financial structure and characteristics of the enterprise in question, current situation of the relevant industry, general economic situations and other necessary matters. |
[This Article Newly Inserted on Oct. 6, 1984]
[Moved from Article 23-3 <Jan. 24, 2017>]
| Article 24 (Entrustment of Business Affairs) |
| (1) | Pursuant to Article 32 of the Act, the Fund may entrust its business affairs in accordance with the following classifications: <Amended on May 6, 2009; Mar. 24, 2014; May 31, 2016; Aug. 4, 2020; Feb. 17, 2022> |
| 2. | Korea Asset Management Corporation established under the Act on the Establishment of Korea Asset Management Corporation: Business affairs under Article 23 (1) 5 and 7 of the Act; |
| (2) | When the Fund intends to entrust its duties under paragraph (1), it shall report to the Financial Services Commission in advance. <Amended on Oct. 6, 1984, Dec. 23, 1994; Dec. 14, 1995; Feb. 29, 2008> |
[This Article Wholly Amended on Jan. 23, 1980]
| Article 24-2 (Guarantee Fee) |
| (1) | The guarantee fee under the former part of Article 33 (1) of the Act and the penalties under Article 34 of the Act shall be collected in accordance with the rate determined by the operations manual under Article 24 of the Act, taking into consideration the credit rating of the relevant enterprise, types of guarantee, etc. <Amended on May 6, 2009; Jan. 5, 2021> |
| (2) | The performance-based guarantee fee under the latter part of Article 33 (1) of the Act shall be determined by a separate contract to be concluded between the Fund and the relevant enterprise, not exceeding 10/100 of the guaranteed amount as prescribed by the Financial Services Commission. <Newly Inserted on May 6, 2009> |
| (3) | The re-guarantee fee under Article 33 (2) of the Act shall be collected by the Fund from the original guarantor in accordance with the rate determined by the operations manual under Article 24 of the Act, taking into consideration the amount paid for the coverage out of the amount re-guaranteed by the Fund for the original guarantor. <Amended on May 6, 2009; Jan. 5, 2021> |
| (4) | The overdue guarantee fee pursuant to Article 33 (3) of the Act shall be an amount calculated by multiplying the unpaid guarantee fee by 10/100 per annum. <Newly Inserted on May 6, 2009> |
[This Article Wholly Amended on Dec. 14, 1995]
Fees pursuant to Article 33-2 of the Act shall be collected as prescribed by the operations manual pursuant to Article 24 of the Act in consideration of expenses and period required for performance of business affairs and the degree of difficulty of business affairs or such. [This Article Newly Inserted on May 6, 2009]
| Article 24-4 (Furnishing of Data and Request for Cooperation) |
[This Article Newly Inserted on May 6, 2009]
| Article 25 Deleted. <May 31, 2016> |
| Article 26 (Management of Sensitive Information and Personally Identifiable Information) |
| (1) | The Fund (including a person who is entrusted with business affairs of the Fund under Article 24) may manage information equivalent to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data that contain resident registration numbers, passport numbers, drivers’ license numbers, or alien registration numbers under Article 19 of that Decree, where there is any unavoidable cause preventing it from conducting the following business affairs: <Amended on Aug. 27, 2013; Jan. 24, 2017> |
| 5. | Business affairs concerning issuance of a notice to an enterprise and a person who is to be a creditor of such enterprise under Article 28 (1) of the Act; |
| (2) | The Financial Services Commission (including a person who is entrusted with business affairs of the Financial Services Commission under Article 43 (2) of the Act) may manage data that contain personal information under the part other than the subparagraphs of paragraph (1), where there is any unavoidable cause preventing it from conducting its business affairs concerning the supervision under Article 42 of the Act and subsequent follow-up measures, and business affairs concerning the reporting and inspection under Article 43 (1) of the Act and subsequent follow-up measures. |
[This Article Newly Inserted on Jan. 6, 2012]
| Article 27 Deleted. <May 6, 2009> |
ADDENDA <Presidential Decree No. 7570, Mar. 4, 1975>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 1975.
Article 2 (Transitional Measures)
| (1) | With respect to a credit guarantee already issued under the provisions of Chapter Ⅳ of the Emergency Decree for Economic Stability and Growth and the Small-and-Medium Enterprises Credit Guarantee Act at the time when the Act enters into force, the creditor concerned may, only when he/she has failed to collect his/her claim even after resorting to the compulsory execution, call upon the Fund to pay the amount of guarantee by submitting to the Fund a request for the discharge of the guaranteed liabilities together with documentary evidence of the bad debt. |
| (2) | In cases of payment of the liabilities under guarantee as provided in paragraph (1), the subordinate liabilities shall, regardless of the provisions of Article 23, comprise the interest on the primary liability for not longer than one year from the payment, calculated at the contracted rate, plus court costs and compulsory execution costs to the extent acknowledged by the court as appropriate. |
Article 3 (Committee's Resolution During Vicarious Execution of Fund's Business)
While the Industrial Bank of Korea acts for the Fund as provided in Article 6 of the Addenda of the Act, the approval of the Minister of Finance shall take the place of a resolution of the committee. In such cases, the preparation or revision of the operations manual under Article 24 of the Act, the formulation or revision of the operations manual as referred to in Article 26 (1) and (3) of the Act, and the determination of the maximum limit of a guarantee under the proviso of Article 20 (2) of this Decree, shall be subject to prior consultation with the Minister of Trade, Industry and Energy.
ADDENDUM <Presidential Decree No. 7833, Sep. 29, 1975>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 8604, Jun. 24, 1977>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 9451, May 7, 1979>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 9735, Jan. 23, 1980>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 10653, Dec. 29, 1981>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 11523, Oct. 6, 1984>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 12416, Mar. 18, 1988>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 12820, Oct. 17, 1989>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 13870, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 14828, Dec. 14, 1995>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 15556, Dec. 29, 1997>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 15569, Dec. 31, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1998.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 15627, Feb. 12, 1998>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability) This Decree shall apply from the first credit guarantee or re-guarantee given after this Decree enters into force. |
ADDENDA <Presidential Decree No. 16709, Feb. 14, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 16736, Feb. 28, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20261, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 21482, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 7, 2009.
Article 2 (Transitional Measures)
ADDENDA <Presidential Decree No. 21835, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 24696, Aug. 27, 2013>
This Decree shall enter into force on Aug. 29, 2013.
ADDENDA <Presidential Decree No. 25279, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 25841, Dec. 9, 2014>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27204, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 25 shall enter into force on September 30, 2016. Article 2 Omitted.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 27804, Jan. 24, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 29677, Apr. 2, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 30893, Aug. 4, 2020>
Article 1 (Enforcement Date)
| (1) | This Decree shall enter into force on August 5, 2020. (Proviso Omitted.) |
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 31860, Jun. 29, 2021>
This Decree shall enter into force on June 30, 2021.
ADDENDA <Presidential Decree No. 32091, Oct. 21, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 21, 2021.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 32449, Feb. 17, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 18, 2022.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 32559, Mar. 31, 2022>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 19-9 shall enter into force on April 1, 2022.
ADDENDUM <Presidential Decree No. 32947, Oct. 4, 2022>
This Decree shall enter into force on the date of its promulgation.